"Buy the dips" is a phrase referring to the practice of purchasing stocks or mutual fund units following a decline in prices. After a significant dip in the price of securities, investors should increase positions on what is seen as an eventual upswing.
The Sensex has time and again shown that the returns following bearish phases are staggering. The below table substantiates this claim:
| Bearish periods | Sensex returns | Bullish periods | Sensex returns |
| Apr'92 - May'93 | -43.60% | May'93 - Aug'94 | 109.24% |
| Aug'94 - Jan96 | -36.10% | Nov'98 - Feb 2000 | 93.80% |
| Feb'00 - Apr'03 | -45.66% | Apr'03 - Dec'07 | 585.42% |
| Dec'07 - Feb'09 | -56.17% | Feb'09 - dec'10 | 130.66% |
| Dec'10 - Dec'11 | -24.64% | Dec'11 - Feb'15 | 89.98% |
Birla Sun Life Equity Fund follows a multi cap style of investing without any sectoral or market cap bias and looks to invest in growth stocks at reasonable valuations. The multi cap style of investing allows the fund manager to be in the most well priced stocks / sectors at the right time as also play on any emerging trends in the market from time to time.
The fund is declaring its annual dividend for FY 2016-17, an amount of Rs 7.7/unit (approx. dividend yield of 8% under Regular plan), record date being 30 November 2016. Following are few key features of this fund:
· The fund has a solid performance track record spanning more than 18 years and has been a wealth creator for investors delivering CAGR 24.44% p.a since inception (Aug 27 1998)
· Since inception, the fund has declared 24 dividends amounting to Rs 90.8 as dividend payouts, basically paying out over 9 times of initial investment through dividends alone!!
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